RUNNERS CLAN FOUNDATION,DOMBIVALI vs. COMMISSIONER OF INCOME TAX, PUNE

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ITA 212/PUN/2024Status: DisposedITAT Pune04 December 2024AY 2024-25Bench: SHRI MANISH BORAD (Accountant Member), SHRI VINAY BHAMORE (Judicial Member)4 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee was not provided with a proper opportunity to explain its case. Therefore, the order of the CIT(E) was set aside and the matter was remanded for fresh consideration.

What were the facts?

The assessee trust applied for registration under Section 12AB. The CIT(E) rejected the application after issuing notices and not being satisfied with the provided information, also cancelling the provisional registration.

What were the issues?

Whether the CIT(E) provided adequate opportunity to the assessee before rejecting the registration application. Whether the rejection of registration was justified based on the information provided.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 12(1)(ac)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE

Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE

For Appellant: Shri Nilesh Kariya
For Respondent: Shri Ajay Kumar Keshari
Hearing: 13.11.2024Pronounced: 04.12.2024

Assessment Year : 2024-25 Runners Clan Foundation, Vs. CIT, Exemption, Pune. 3 Omkar Unity Sadan, Plot No.203, Ramchandra Nagar, Next to Rushabh Dairy, Gandhi Nagar, Dombivali, Kalyan- 421201. PAN : AAETR5018H Appellant Respondent Assessee by : Shri Nilesh Kariya Revenue by : Shri Ajay Kumar Keshari Date of hearing : 13.11.2024 Date of pronouncement : 04.12.2024 आदेश / ORDER

PER VINAY BHAMORE, JM:

1.

This appeal filed by the assessee is directed against the order dated 19.12.2023 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 12AB of the IT Act.

2.

Facts of the case, in brief, are that the assessee is a trust filed its application for registration in Form No.10AB under clause (iii) of section 12(1)(ac) of the IT Act on 31.08.2023. With a view to verify the genuineness of the activities of the assessee and compliance to requirement of any other law for the time being in force by the trust/institution as are material for the purpose of achieving its objects, a notice was issued by LD CIT(E) through ITBA portal requesting the assessee to upload certain information/clarification. The desired information was furnished by the assessee. However, Ld. CIT, Exemption, Pune was not satisfied with the explanation furnished by the assessee trust and rejected the application for registration and also cancelled the provisional registration granted to the assessee. It is this order against which the assessee is in appeal before this Tribunal.

3.

Ld. AR appearing from the side of the assessee submitted before us that Ld. CIT, Exemption, Pune has not provided proper opportunity to the assessee, & therefore the order is not justified. It was submitted that the assessee trust submitted desired information before Ld. CIT, Exemption, Pune & if he was not satisfied with the information submitted by the asseseee he ought to have provided at-least one more opportunity to the assessee trust before jumping to any adverse conclusion. Accordingly, it was requested before the Bench to set-aside the order passed by Ld. CIT, Exemption, Pune and further requested to provide one opportunity to submit the documents in support of application for registration.

4.

Ld. DR appearing from the side of the Revenue placed heavy reliance on the orders passed by the subordinate authorities and requested to confirm the same.

5.

We have heard Ld. Counsels from both the sides and perused the material available on record. We find that admittedly only two opportunities were given to the assessee and on both the occasions, the assessee made compliance to the notices issued by the Ld. CIT, Exemption, Pune. It is sole contention of the assessee that if Ld. CIT, Exemption, Pune was not satisfied with the compliance made by the assessee trust he should have had provided at-least one opportunity to the assessee to explain his case. Considering the totality of the facts of the case and in the interest of justice without going into the merits of the case, we set-aside the order passed by Ld. CIT, Exemption, Pune and remand the matter back to him with direction to decide the application for registration afresh as per fact and law after providing reasonable opportunity of hearing to the

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